The board of the Welsh Rugby Union will meet early in the new year to decide its response if its four regions fail to continue the participation agreement binding them to the Heineken Cup and the RaboDirect Pro12 until 2018.

The regions have until 31 December to agree the rollover but, with no increase in central funds – they suffer a cut in income every time a player leaves for a club in England or France of around £40,000 – they will not do so, leaving the dispute heading for the high court.

WRU officials and the Wales head coach, Warren Gatland, met representatives of the regions' supporters' groups on Monday. The governing body's stance was that there was no alternative plan and its hope was that the regions continue the agreement, stressing there would be no increase in funding.

The WRU intends to hold a board meeting on 2 January when, if the regions have failed to meet the deadline, alternative options will be considered. BBC Wales reported on Friday that the union was considering offering central contracts to six players whose deals with the regions run out at the end of the season, including Sam Warburton and Leigh Halfpenny.

The regions have until Monday to say how they would spend the £1m which the WRU set aside in the summer to help keep leading players in Wales, but the four are expected that day to ask instead for an extension of the 31 December deadline with the future of the Heineken Cup still unresolved after a meeting in Dublin on Friday.

The French Rugby Federation told the four RaboDirect Pro12 unions that its involvement in the 20-team, five-nation Heineken Cup proposed for next season was conditional on it being run by Fira, the organisation of developing unions in Europe, not European Rugby Cup Ltd or the Six Nations committee, leaving them with two unpalatable alternatives: no European club rugby next season or acceptance that Fira should become involved in how the whole game in Europe is run.

The fans' groups issued a joint statement after drawing up minutes of the meeting with the WRU and submitting them to the governing body for checking. They expressed disappointment at the lack of alternative solutions to "critical issues" and the "unwavering reliance" on the current business model.

"The understanding of the challenges the regions face to be competitive businesses and rugby teams aren't being fully appreciated," they said in the statement. "We were disappointed to be informed that the WRU felt it was not an option to explore an Anglo-Welsh league, due to existing contractual arrangements, given the public excitement in Wales from regional rugby supporters.

"Whilst we appreciated the seniority of the attendees from the WRU who clearly wanted to demonstrate that they were willing to listen to us, we also felt surprised at the lack of empathy shown to supporters who are facing the demise of professional rugby and the regions they have invested so much time, money and emotion in over the past decade. The WRU could give no assurances over the future of our game ... no solution to the player drain was offered."

The statement noted that the WRU's pride and passion for "Team Wales" were evident but there is growing concern within the game of what is happening at grassroots level with youth teams closing and fixtures being called off because clubs are unable to find enough players.

The regions have called on local politicians, MPs and Welsh Assembly members, to help them secure the finding they argue is in the Welsh game to ensure they are able to retain players and be competitive in Europe.

"The need for an independent inquiry in the new year into the governance and funding of Welsh rugby is now very clear," said the leader of the Conservatives on the Assembly, Andrew RT Davies. "In particular, the Welsh Parliament should look closely at the repeated disagreements and complications, and their impact on grassroots sport.

"The Communities, Equalities and Local Government committee has the potential to act as an honest broker on what appears to be a deteriorating situation. Now is time to look very closely at the economic position our regions and union find themselves in."